Segment Data

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Data

Segment Data

The following tables reflect our segment and Corporate information and reconciles Adjusted EBITDA for reportable segments to consolidated Net income (loss) attributable to Covetrus:

	At and For the Three Months Ended September 30, 2020
	North America		Europe		APAC & Emerging Markets		Corporate		Eliminations		Total
Net sales	$	618	$	403	$	108	$	—	$	(3)	$	1,126
Adjusted EBITDA	$	45	$	19	$	8	$	(13)	$	—	$	59
Total assets	$	3,124	$	700	$	173	$	1,169	$	(1,656)	$	3,510
Reconciliation of Net income (loss) attributable to Covetrus to Adjusted EBITDA:
Net income (loss) attributable to Covetrus											$	(35)
Plus: Depreciation and amortization											41
Plus: Interest expense, net											10
Plus: Income tax (benefit) expense											3
Earnings before interest, taxes, depreciation, and amortization											19
Plus: Share-based compensation											11
Plus: Strategic consulting											3
Plus: Transaction costs (a)											1
Plus: Separation programs and executive severance											2
Plus: IT infrastructure											1
Plus: Formation of Covetrus (a)											4
Plus: Equity method investment and non-consolidated affiliates (b)											1
Plus: Operating lease right-of-use asset impairment											8
Plus: France managed exit (c)											8
Plus: Other items, net											1
Adjusted EBITDA											$	59
(a) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company.
(b) Includes the proportionate share of the adjustments to EBITDA of consolidated and non-consolidated affiliates where Covetrus ownership is less than 100%.
(c) Includes $7 million of severance and $1 million of other costs. See Note 3 - Divestiture and Equity Method Investment for further discussion.

	At and For the Three Months Ended September 30, 2019
	North America		Europe		APAC & Emerging Markets		Corporate		Eliminations		Total
Net sales	$	543	$	384	$	94	$	—	$	(3)	$	1,018
Adjusted EBITDA	$	39	$	15	$	5	$	(10)	$	—	$	49
Total assets	$	2,829	$	622	$	121	$	1,108	$	(1,371)	$	3,309
Reconciliation of Net income (loss) attributable to Covetrus to Adjusted EBITDA:
Net income (loss) attributable to Covetrus											$	(959)
Plus: Depreciation and amortization											41
Plus: Interest expense, net											16
Plus: Income tax (benefit) expense											(7)
Earnings before interest, taxes, depreciation, and amortization											(909)
Plus: Share-based compensation											10
Plus: Formation of Covetrus (a)											13
Plus: Separation programs and executive severance											1
Plus: IT infrastructure											2
Plus: Goodwill impairment											939
Less: Minority interest in goodwill impairment											(3)
Less: Other items, net											(4)
Adjusted EBITDA											$	49
(a) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company.

	For the Nine Months Ended September 30, 2020
	North America		Europe		APAC & Emerging Markets		Corporate		Eliminations		Total
Net sales	$	1,771	$	1,166	$	288	$	—	$	(8)	$	3,217
Adjusted EBITDA	$	141	$	53	$	20	$	(44)	$	—	$	170
Reconciliation of Net income (loss) attributable to Covetrus to Adjusted EBITDA:
Net income (loss) attributable to Covetrus											$	(15)
Plus: Depreciation and amortization											124
Plus: Interest expense, net											37
Plus: Income tax (benefit) expense											6
Earnings before interest, taxes, depreciation, and amortization											152
Plus: Share-based compensation											30
Plus: Strategic consulting											13
Plus: Transaction costs (a)											8
Plus: Separation programs and executive severance											4
Plus: IT infrastructure											3
Plus: Formation of Covetrus (b)											17
Plus: Capital structure											2
Plus: Equity method investment and non-consolidated affiliates (c)											1
Plus: Operating lease right-of-use asset impairment											8
Plus: France managed exit (d)											8
Less: Other items, net (e)											(76)
Adjusted EBITDA											$	170
(a) Includes legal, accounting, tax, and other professional fees incurred in connection with acquisitions and divestitures.
(b) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company.
(c) Includes the proportionate share of the adjustments to EBITDA of consolidated and non-consolidated affiliates where Covetrus ownership is less than 100%.
(d) Includes $7 million of severance and $1 million of other costs. See Note 3 - Divestiture and Equity Method Investment for further discussion.
(e) Includes a pre-tax gain of $72 million from the sale of scil and a $1 million gain on the deconsolidation of SAHS. See Note 3 - Divestiture and Equity Method Investment.

	For the Nine Months Ended September 30, 2019
	North America		Europe		APAC & Emerging Markets		Corporate		Eliminations		Total
Net sales	$	1,592	$	1,114	$	270	$	—	$	(8)	$	2,968
Adjusted EBITDA	$	117	$	50	$	13	$	(27)	$	—	$	153
Reconciliation of Net income (loss) attributable to Covetrus to Adjusted EBITDA:
Net income (loss) attributable to Covetrus											$	(982)
Plus: Depreciation and amortization											113
Plus: Interest expense, net											41
Plus: Income tax (benefit) expense											(7)
Earnings before interest, taxes, depreciation, and amortization											(835)
Plus: Share-based compensation											35
Plus: Formation of Covetrus (a)											26
Plus: Separation programs and executive severance											1
Plus: Carve-out operating expenses											5
Plus: IT infrastructure											4
Plus: Goodwill impairment											939
Less: Minority interest in goodwill impairment											(3)
Less: Other items, net											(19)
Adjusted EBITDA											$	153
(a) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company.

See Note 4 - Revenue from Contracts with Customers for our revenue disaggregated by major product category and reportable segment.